Problems of dynamic programming

Abstract

The paper investigates the rational allocation of financial resources within industrial associations using the dynamic programming framework. The study details an algorithm, based on R. Bellman’s principle of optimality, for distributing a limited volume of investment among business entities so as to achieve maximum economic efficiency. Using functional equations and computational tables, the authors develop an optimal investment allocation plan. The resulting optimal plan allocates 120 of the 200 units of capital to the first enterprise and 80 units to the fourth, yielding a maximum total income of 95 units for the association.